## 5.4 Forecast horizon and form

Forecast horizon is a number of future periods for which the forecast is made

It is often defined with the nature of the analyzed variable, e.g. if it is unrealistic to assume that the variable would change similarly as in periods before, then long-term forecast are inappropriate

Forecast classification considering the timescale:

**1. Short-term**
**2. Medium-term**
**3. Long-term**

Point estimate or point forecast is a number (value) that represents the best estimation of a future value of analyzed variable

Prediction interval is an interval in which future observations are expected to be, with certain probability level